Financing Training

Windchill

Well-Known Member
For those who have been through/going through the process, I was wondering if you could offer insight regarding Key Bank and Sallie Mae and why you might have chosen one over the other.

Appreciate the info.
 

ready2fly

Well-Known Member
I have a Sallie Mae (two actually) and they have worked out well for me. The money was in the account at the FBO on time each time and the application process is a breeze.

We are paying on them from the get-go too, so that helps.

Best of luck!

R2F
 

SierraPilot

New Member
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I have a Sallie Mae (two actually) and they have worked out well for me. The money was in the account at the FBO on time each time and the application process is a breeze.


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Hey ready2fly, was your FBO part 141? The reason I'm asking is at least with Key Bank they only let you get loans for approved 141 schools (to my knowledge), and my local FBO is only part 61 and would be alot more convenient to where I live.

Also are the Sallie Mae loans deferred? The only places I could find to let me get a loan for my FBO would only defer the prinicpal and not the interest.. which I can afford right now myself.

Ryan
 

vsnick

New Member
Just got approved by Key Bank and I'm not going to a Pt.141 school. But it might depend on what Pt.61 school you go to.
 

Cosmo1999

Well-Known Member
I would recommend staying away from loans altogether if all possible. I have heard some shady operations on the key bank side of things regarding how they handled the entire ATA fiasco. Its best to stay debt free and pay as you go then you dont have a huge loan to pay off when your done with your training while your only making probationary F/O pay... The intrest is also racking up the entire time you are flying regardless of who you go with. Just best to stay debt free then the money that would go to the loan payment can go to food to fill up your stomach
just my .02 though. I think they both have their ups and downs
 

SteveC

Really?
Staff member
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I would recommend staying away from loans altogether if all possible. I have heard some shady operations on the key bank side of things regarding how they handled the entire ATA fiasco. Its best to stay debt free and pay as you go then you dont have a huge loan to pay off when your done with your training while your only making probationary F/O pay... The intrest is also racking up the entire time you are flying regardless of who you go with. Just best to stay debt free then the money that would go to the loan payment can go to food to fill up your stomach
just my .02 though. I think they both have their ups and downs

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I'm 100% in agreement. This is good advice. Debts and interest will eat you alive. Much, much better to work your buns off at two or three jobs while you stash enough cash for the next rating, then dive in and do it. Alternate as required. Don't be fooled, an extra year or two won't kill your job potential, and it will be so much better when you're working that low paying CFI or regional job and don't have to bear another $400, $500, $600 or more in debt every month. Think about it. Regional pay @ $20,000 per year is $1,666.67 per month gross, $1,000 take home. Subtract $500 for loan debt, $400 for an apartment, $300 for food, and see where we're going here?
 

Prospective_Pilot

New Member
Cosmo1999 and SteveC,

Both you guys have excellent advice that I couldn't agree more with.

LISTEN TO THESE GUYS PEOPLE!!!!!!!


Try and keep out of debt! In the long run you will have more MONEY!! Why give away someone else YOUR money when that money could be used to buy something u need, or have wanted????


I'll be starting my flight training soon. I will be paying as I go, the WHOLE way.....pretty much all by myself, and no financial help from my parents. Taking out loans is simply not an option, for me, even if I believed in debt which of course I don't....

Sure, it will be hard having to work a couple of jobs and living like a bum, but isn't that what "paying your dues" all about??? Working hard to achieve your goals and dreams????

Best thing is, in the end I'll end up with alot more money.
New car??? House??? Plane??? Trip around the world to exotic destinations with gorgeous foreign chicks??? Wedding???


And I will make it to where I want to be one day, because the word "can't" doesn't mean anything to me.... At the least I'm willing to die trying!!!!!!!

 

JDMcFly

New Member
Except $500 a month for loan debt is a gross exaggeration, unless you are paying off a lot more than your scedule (in which you will be penalized).

It'd be great to keep out of debt, but there is a reason not everybody is able to. Much, much, easier said than done, guys.

An eighty thousand dollar payback on whichever size loan (let's say 40, we'll double it due to insane interest
) makes a little over 300 dollars a month to make payments on a 20 year schedule, with that interest already calculated in. Sallie Mae and Key both have minimum payments of 40-50 dollars without penalty for those months where it's tough, though you'll have to pay catchup in later months.

Just saying, don't exaggerate so much
. There was a thread on this awhile ago about the whole loan/no loan; He asked which loan, not whether he should get one (although I'm sure he appreciates the advice
).

"Best thing is, in the end I'll end up with alot more money. New car??? House??? Plane??? Trip around the world to exotic destinations with gorgeous foreign chicks??? Wedding???"

lol, you make it sound like working your ass off for 3 years working 3 jobs at poverty levels while wondering if you're ever even start what you wanted to do, will make you so much more richer than if you had taken those loans...
.
 

Prospective_Pilot

New Member
There is no limit on what you can make. There are creative ways to make the money you need.. All that needs to be done is to find one. If that doesn't work come up with a new one and keep trying while taking every possible opportunity available, and eventually you will succeed.

I just recently wrote a proposal to a company explaining to them how I could help them cut cost..... Sure, it's probably a stupid idea, but they are interested BELIEVE IT OR NOT!

All I'm saying is no one NEEDS to go into debt. If you look hard enough you will find other ways to get the money you need.

So many crazy people out there have come up with the most insane stupid ideas which have produced millions... No reason anyone else can't....

I have several very successful friends who have proven this to me........
 

braidkid

New Member
Yes, I would definately make the suggestion to stay out of debt as well.

I got the $8k loan from key because I don't have to begin payments until next september. I already have the money to pay it off...this way I can let it build interest until I pay it off in full in September.
 

ready2fly

Well-Known Member
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Hey ready2fly, was your FBO part 141?

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Ryan, nope. It's Part 61.

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Also are the Sallie Mae loans deferred? The only places I could find to let me get a loan for my FBO would only defer the prinicpal and not the interest.. which I can afford right now myself.

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I think (read "not sure") that the Sallie Mae loans are the same way. I think you can defer the principal only. I remember being offered "interest only" payments.

I think (again - "not sure") that you can only defer if you are (a) in school full time, (b) in the military, or (c) declare a hardship.

But, I wouldn't bank on that. We started paying on both the principal and the interest right away.

Best of luck!!

R2F
 

sbe

Well-Known Member
I don't have any flight training loans, but my undergrad degree loans were/are with Sallie Mae. From that standpoint, I have nothing but good things to say about them. Very well organized company easy to sign online and check your payoff, etc.

My flight school promotes loans through Pilot Finance, I took a look @ their brochure, interest rates = ouch! It'd be like financing on a credit card then paying off just a bit at a time. That'd make for some expensive ratings, totally negating the cost savings of flight training at a Part 61 FBO.

Given that I do have a college loan out there (almost done, woohoo!) I'm going the debt free route. It can be done. I just work my butt off to pay for flying. So far I've paid for 210 flight hours out of pocket and I'm still standing.
Definitely slower than taking out the loan, or going to an academy. I'll finish my Comm probably end of Feb., about 20 months after I first started flying. But I keep on going steadily, and that's enough for me.

Sarah
 

pkloop

New Member
Nothing wrong with taking out loans to pay for training. You could go to law or medical school without loans too but why? Aviation training should be no different. Make your payments and pay more than they ask, (which isn't hard with SLM) and you'll be fine. I guess it helps when your spouse is about to enter a well paying career so the "lean times" won't be that lean
 

sbe

Well-Known Member
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Nothing wrong with taking out loans to pay for training.

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I didn't say there was anything wrong with it. It was a personal choice I made based on my situation, and a decision to free up as much of my future measly income as I possibly can.

Sarah
 

ready2fly

Well-Known Member
I only wish that I could have financed mine with the "pay as you go" method. I admire those who can and do.

The loans were the best route for us though.

They'll get paid off..... one day.
 

StevenL

New Member
I took two loans out. One home equity loan and one through Sallie Mae.

Have to agree with ready2fly, process was a breeze with Sallie Mae and I have no real complaints.

Good luck.
 

naunga

New Member
Okay,

I've got a Sallie Mae loan for my PPL work. Like Ready2Fly says, it's worked out well.

From what I can tell you can't get a deferral for a Career Training loan from Sallie Mae (which is what the flying stuff is). If you go to an accredited college you can get governement loans which you can deferr / forebear until the end of time.

That's kinda why I'm looking to do my Masters at someplace with a fligth program. Let Unlce Sam pay for my training.

I also agree with the comments about staying out of debt, but lets face it unless you're pullin' in 6 figures and can keep your job while you're training it's not always fesible. Esspecially if you have any kind of family you're responsible for.

But...

I will say this. Apart from a local FBO, I would never give all of my loan money to any school. If you do that you risk getting into a situation like what happened at ATA. If I were to go to like FlightSafety my loan check would come to me first and the school gets what I owe them as I owe it. The only reason I say "apart from the local FBO" is that most FBO's tend to be pretty close knit groups (at least the flight school portion). You get to know the owners pretty quickly. I will say that even at the FBO I would wait a few months before getting a loan. It'll be pretty clear if they're shady or not in that time.

Typically the problem that people have with loans is not the fact that they're in debt, but rather that they have no plan to pay the debt. I've never understood these people who go and get loans up the wazoo, get the money, and then say, "How am I going to pay this back?" Dude! You need to figure that out before you get the money. It's not a difficult task, you simply plan for the worst. Say, "Okay I've got $40K to pay back. My monthly payment is $200 (roughly 15 years to pay it back). If I work 40 hours a week a $5/hr I can make that." You know that most jobs pay more than $5/hr, but if you get into a tight spot you know that you have to make at least $5/hr to make it. And $5/hr jobs are pretty easy to come by. And when you get into a steady job you can make better plans. I mean, I know the exact date that my student loans will be paid off. Hell, I bought an Xbox on a BestBuy card and knew exactly when it would be paid off. You gotta have a plan.

Anyhow, just my thoughts on the whole debt issue.

Naunga
 

tonyw

Well-Known Member
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a decision to free up as much of my future measly income as I possibly can.

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This is a very smart thing to do if you ask me.

Most people here are going to have to teach for a while. What will that mean? It means you'll be lucky to make $15K a year for a while. And you want to add a $200 a month loan payment to that? How are you going to eat? And then you'll land a first officer job at a regional, making $20K a year if you're lucky and still have that $200 a month loan to pay.

Ouch.

As for the loans themselves, my brother and sister have some of them for law school and med school. They haven't had any problems with the Sallie Mae but they hate writing that check every month!
 

EatSleepFly

Well-Known Member
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And you want to add a $200 a month loan payment to that?

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$200/month? Damn, I'd be able to eat if my loan payment was only $200 a month!



And JDMcFly:

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Except $500 a month for loan debt is a gross exaggeration,

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No, it is not.
 
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